Bank Freezing Accts after filing Chap 7

[cassie3783]

I've heard that it's pretty common for some banks to automatically freeze your bank accounts (particularly WF) when you file bankruptcy, but has anyone heard of Capital One doing this?  Cap1 will not be included in my bankruptcy when I file so I'm just curious if I need to move my primary checking to another bank to avoid the hassle of frozen accounts.

[Anonymous]

If you have any accounts with Capital One whether they are going to be included or not can trigger them freezing your bank accounts and also closing your credit card accounts as soon as your BK is filed. I would definitely consider moving your accounts to banks that are not handling any open accounts for you. I wish you luck on your BK and credit rebuild.

[Anonymous]

At the CU's I've worked with if you had anything with us such as a loan etc we would close your accounts and take whatever money was in your checking/savings and apply it to the loan when we closed it since we were taking a loss. I know other banks will close your checking/savings accounts with them when they get a BK notice. Ideally you should open a new account with a CU prior to filing.

[cassie3783]

I'll, of course, be asking this question when I meet with the BK atty next week for my consult, but how does it not trigger the new CU to freeze the account when BK is filed?  I wouldn't be including Cap1 in the BK (nor the new CU account) so what prevents the new CU account from freezing as well?

Sorry if that's not very clear.  

[Anonymous]

If you already have a new CU account then don't worry about them freezing it. Sometimes people who owe money show up on CHEX system so that's why you should do it before you file. If you have any loans/CCs with Cap One I would consider taking any money you have in a checking/savings out now before they get notice of the BK filing. If you don't have anything attached to you besides a checking/savings you "should" be fine, but most people have LOC, CCs etc attached to them and have an account there so they just shut everything down if you cause them a loss.

[cassie3783]

Gotcha!  Thanks for clarifying!  I have a checking, savings, & cc with Cap1 so I guess I'll be closing out & moving.  That sucks, Cap1 was good to me & not IIB.

[nykos5000]

I guess it all depends. I included an unsecured loan, line of credit, and a credit card in my bk with US Bank and they never attempted to close any of my other accounts. Remember, it would be illegal for them to take money from you once you file and there is a stay in place. If discharged then you’re no longer liable for that debt. 

On the other hand, my lawyer mentioned WF for being notorious for closing accounts after filling. I believe he mentioned that the funds are returned eventually. 

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@cassie3783

[Anonymous]

yes, move the accounts. Also any direct deposit paychecks to somewhere else.

Consider opening a new acct now while you can.

An attorney advised me the funds could be recovered too, but forget it.